Citigroup Stock Is Trading Below Its Intrinsic Value

Citigroup’s stock (NYSE: C) has lost 9% YTD, as compared to the 14% rise in the S&P500 over the same period. Further, the stock is currently trading at $41 per share, which is 26% below its fair value of $56 – Trefis’ estimate for Citigroup’s valuation.

Interestingly, Citigroup
C
stock had a Sharpe Ratio of almost zero since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.